What happens to a novated lease when you change jobs
A novated lease is tied to your employer’s payroll, so changing jobs changes how it is paid. Nothing is lost, but the cost can change, and for electric cars the rules change for new employers from 1 April 2029.
Your two options
When you leave your employer, the lease stays in place with the financier. What changes is who makes the payments:
- Your new employer agrees to package it: the lease is novated to them and carries on through their payroll, with the tax saving.
- Your new employer doesn’t package: the payments come back to you, from your take-home pay, with no tax saving. You can also pay out the lease.
The 2029 change for electric cars
From 1 April 2029, the rules change for electric car leases moved to a new employer, and the FBT exemption may not carry over. A lease that costs one amount today could cost noticeably more each week after a job change.
If there’s a chance you’ll change jobs during the lease, that matters as much as the rate. Navo works out the weekly cost both ways and shows it before you choose.
How to plan for it
Think about how settled your job is over the lease term. A shorter term, a car loan, or a business loan (if you have a business) may suit you better if a move is likely. Tell Navo whether a job change is likely and it is built into the result.
Worked examples
Open an example in the Navo engine, add your own income, and see the figures for every way to pay.
A teacher who might move schools
Packaging at work, a new electric car, a job change possible in the next few years.
Settled in the job
The same car, with no job change expected: compare the result.
Questions
Do I have to pay out my novated lease if I leave my job?
No. The lease can move to your new employer if they agree, or the payments come back to you. Paying it out is an option, not a requirement.
Can my new employer refuse to take over my lease?
Yes, packaging is up to the employer. If they don’t, you keep paying the lease from your take-home pay.
What if I’m between jobs for a while?
The payments are yours to make while there’s no employer packaging them. Plan for that if a gap is likely.
Reviewed 7 October 2026. General information only, not tax or financial advice.